Question about moving to Spain from the UK taxation
If the Spanish tax year is only a full calendar year, and when you leave the UK you can switch to a null tax code, does that mean you can avoid paying tax for 6 months when moving to Spain from the UK? Am I missing something?
Answers
These are the answers of some Facebook group members:
”You don’t need to pay local taxes for 183 days but it must be declared somewhere”
”As an autonomous (freelancer in Spain) the 183 days isn’t valid, you are working in Spain and therefore subject to taxes once registered. Any tax paid in another country can be put in the return if the DT is applicable”
”If I sell my house, I’m only liable for the tax if I spend more than 183 days in Spain in 1 year. So are you saying that is true, but for income tax, it’s immediate? That’s where I’m a bit lost. (I will still be paid PAYE by the UK company)”
“So technically you don’t become a Spanish tax resident until the 183 days has passed. So you could continue to pay in UK. You could register sooner and pay in Spain quicker but make sure you stop being a UK tax resident or you can end up with double taxation issues. It’s never tax free unfortunately
”No not as a nomad, you really need to discuss this with an accountant. It’s all different rules for the nomads, normally a worker for an overseas company in Spain can request the Beckhams law. But I don’t know your circumstances to comment enough”
Conclusion
So in conclusion, According to Spainguru Facebook group members, the answers emphasize the complexity of tax regulations when moving to Spain from the UK. The applicability of rules regarding the number of days spent in a country and tax codes varies depending on individual circumstances. It’s clear that consulting with a tax expert or accountant is essential due to the intricate nature of tax laws and the potential consequences of trying to avoid taxes based on timing alone. Professional guidance is crucial to ensure compliance and make informed decisions when dealing with international taxation issues.
